Taxable value inclusion of surcharges on telephone bills expands the service tax base and must be levied accordingly. Service tax on telephone connections must be calculated on the gross total amount charged to the subscriber; surcharges collected for delayed payment are part of the taxable value. Consequently, service tax is to be levied on the gross bill, so payment after the pay-by date requires tax to be charged on the bill amount (exclusive of service tax) plus the surcharge.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxable value inclusion of surcharges on telephone bills expands the service tax base and must be levied accordingly.
Service tax on telephone connections must be calculated on the gross total amount charged to the subscriber; surcharges collected for delayed payment are part of the taxable value. Consequently, service tax is to be levied on the gross bill, so payment after the pay-by date requires tax to be charged on the bill amount (exclusive of service tax) plus the surcharge.
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